Syneos Health ( NASDAQ: SYNH ) stock fell ~17% on Aug. 2, after the company cut its FY22 outlook to reflect lower expected reimbursable expenses in its Clinical Solutions segment and increased impact of foreign currency exchange rate fluctuations.
Q2 adjusted EPS grew +28.9% Y/Y to $1.25, beating analysts' estimates. However, revenue missed expectations despite rising +6.1% Y/Y to $1.36B.
The company said revenue was below the midpoint of the its guidance due to lower reimbursable expenses in Clinical Solutions and the impacts of foreign exchange.
Clinical Solutions revenue increased +3.3% Y/Y to ~$1.03B.
Clinical Solutions net new business awards and book-to-bill ratios: Including reimbursable out-of-pocket expenses, $947.4M for Q2, a Y/Y decline of 34.2% and a book-to-bill ratio of 0.92x.
Excluding reimbursable out-of-pocket expenses, $758.5M for Q2, a Y/Y decline of 15.1% and a book-to-bill ratio of 1.06x, the company said in its Aug. 2 earnings release.
Commercial Solutions revenue grew +15.7% Y/Y to $335M;
Adjusted EBITDA rose +19.2% Y/Y to $208.1M.
Outlook :
The company expects 2022 Revenue to be in the range of $5.44B to $5.54B, compared to previous estimate range of $5.60B to $5.75B. Consensus Revenue Estimate for 2022 $5.66B.
Syneos now expects Adjusted EPS between $4.97 and $5.11, prior estimate of $5.05 to $5.25. Consensus EPS Estimate for 2022 is $5.11.
Adjusted EBITDA is expected between $835M and $865M, prior range $845M to $885M. Syneos now expects GAAP EPS between $2.72 and $2.79, prior estimate of $2.73 to $2.89.
For further details see:
Syneos stock slumps 17% as FY22 outlook slashed on reimbursable expenses/forex impact